WideOpenWest, Inc. (NYSE:WOW) CEO Teresa Elder has sold a significant amount of company stock, according to a recent SEC filing. The transaction, which took place on June 3, 2024, involved the sale of 20,000 shares at an average price of $5.2088 per share, totaling $104,176.
Investors tracking insider transactions may note that this sale was conducted under a pre-arranged trading plan. Specifically, the sale was executed pursuant to a Rule 10b5-1 trading plan that Elder adopted on December 13, 2023. Rule 10b5-1 allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
The range of prices at which the shares were sold varied from $5.15 to $5.37. The SEC filing stated that Elder would provide full information regarding the number of shares sold at each separate price if requested by the SEC staff, the issuer, or any securityholder of the issuer.
Following the sale, Elder still owns a substantial amount of WideOpenWest shares, with 1,615,787 shares remaining in her possession. This transaction reflects a change in her holdings, but it does not necessarily indicate a shift in company strategy or performance.
WideOpenWest, Inc., headquartered in Englewood, Colorado, operates in the cable and other pay television services industry. The company's performance and insider transactions, such as those of CEO Teresa Elder, are often closely watched by investors seeking insights into the company's prospects and leadership confidence.
In other recent news, WideOpenWest (WOW) has reported notable developments in its operations and financial performance. The company's first quarter 2024 earnings revealed an increase in high-speed data revenue to $106.2 million, a year-over-year rise of 1%. Additionally, adjusted EBITDA showed a growth of 3.4% to $67.4 million.
In other developments, WOW secured a $2.39 million grant from the Alabama Department of Economic and Community Affairs, which will be used to expand the company's fiber network in Houston and Henry Counties in southeastern Alabama. This move is expected to connect nearly a thousand homes with high-speed internet, underscoring WOW's commitment to enhancing broadband access in underserved areas.
Furthermore, Raymond James has downgraded WOW's stock rating from Outperform to Market Perform following the disclosure of a non-binding preliminary acquisition proposal from Crestview, WOW's majority shareholder, and related entities, along with DigitalBridge. The proposed acquisition price aligns closely with Raymond James' prior price target for WOW.
These recent developments highlight the ongoing changes and strategic moves within WOW as it navigates the dynamic broadband services market.
InvestingPro Insights
In light of the recent insider activity at WideOpenWest, Inc. (NYSE:WOW), it's essential to consider the company's financial health and market performance. According to InvestingPro data, WideOpenWest has a market capitalization of $449.07 million and has experienced a significant return over the last week, with a 1 Week Price Total Return of 9.77%. This sharp increase could provide context to the timing of CEO Teresa Elder's stock sale.
InvestingPro Tips suggest that WideOpenWow operates with a significant debt burden and is quickly burning through cash. These factors are crucial for investors to consider, as they could impact the company's financial stability and future growth prospects. Additionally, with the company not paying dividends to shareholders, investors may be more reliant on stock performance for returns.
Despite the challenges, the company has shown a strong return over the last three months, with a 3 Month Price Total Return of 43.87%. This performance is noteworthy, especially when considering the company's current P/E Ratio of -1.65, indicating that the market has expectations of future earnings growth. Moreover, analysts predict that the company will be profitable this year, which could be a turning point for WideOpenWow's financial trajectory.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/WOW, which could offer further insights into WideOpenWow's financials and market position. Plus, using the coupon code PRONEWS24 can provide an extra 10% off a yearly or biyearly Pro and Pro+ subscription, giving access to a comprehensive suite of investment tools and data.
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